UPSC Prelims Practice Questions — HC quashes tax notices to NDTV founders

Q1. With reference to the reassessment regime under the Income Tax Act, 1961, consider the following statements comparing the pre- and post-Finance Act, 2021 position: 1. Under the pre-2021 regime, a reassessment notice under Section 148 could be issued up to 16 years from the end of the relevant assessment year where the escaped income related to an asset located outside India. 2. The Finance Act, 2021 inserted Section 148A, which mandates a prior inquiry and a reasoned opportunity of being heard before issuance of a reassessment notice. 3. Under the post-2021 regime, a notice beyond three years from the end of the relevant assessment year is permissible only where the escaped income, represented in the form of an asset, amounts to ₹50 lakh or more. Which of the statements given above are correct?

Under the pre-2021 regime, a reassessment notice under Section 148 could be issued up to 16 years from the end of the relevant assessment year where the escaped income related to an asset located outside India.
The Finance Act, 2021 inserted Section 148A, which mandates a prior inquiry and a reasoned opportunity of being heard before issuance of a reassessment notice.
Under the post-2021 regime, a notice beyond three years from the end of the relevant assessment year is permissible only where the escaped income, represented in the form of an asset, amounts to ₹50 lakh or more.

A. Income earned by a non-resident outside India which is not chargeable to tax in India
B. Income chargeable to tax which has not been assessed, or which has been under-assessed, in a previously completed assessment
C. Income on which tax has been deducted at source but the deductor has failed to deposit it with the Government
D. Income claimed as exempt under Chapter III which the Assessing Officer subsequently disallows in scrutiny